Telangana Factory Blast: Sigachi Industries Confirms 40 Deaths; Calls It 'Accident', Denies Reactor Explosion

Two days after the explosion at a Sigachi Industries Ltd facility in Telangana's Pashamylaram, the company on Wednesday stated that the accident was not caused by a reactor explosion. They said they will continue to send more updates as and when they receive information from the ongoing investigation, while the plant operations will remain temporarily suspended for approximately 90 days.

In a press release issued on Wednesday, July 2, the company confirmed that the blast on June 30 led to the deaths of 40 workers and left 33 others injured, as per PTI.

"It is with anguish that we share details of the accident that occurred at the Sigachi Industries facility in Pashamylaram, Telangana, resulting in the loss of 40 valued team members and one that left over 33 injured," the company said in a statement.

The company further stated that, since the time of the accident, the firm has been coordinating the emergency response, family support, and extending cooperation with the investigation and compliance efforts.

Sigachi Industries is involved in the manufacture of pharmaceutical excipients, intermediates, APIs, and nutraceutical ingredients. Following news of the explosion, the company's shares dropped by 9.89 per cent on the Bombay Stock Exchange, trading at rupees 49.72 by noon on Monday

Taking cognisance of the tragic incident, Chief Minister A Revanth Reddy on Tuesday said the state government will engage with the management of the firm to ensure that a compensation of rupees 1 crore is paid to families of those who died in the horrific accident. The CM also said those who are seriously injured will receive Rs 10 lakh, while those who are injured but can resume work after some recovery will be provided Rs 5 lakh.

The company also announced an ex gratia of rupees 1 crore each to the family of those who lost their lives in the deadly incident. "Sigachi Industries Ltd has committed to an exgratia compensation of Rs 1 crore (each) to the families of the deceased, while those injured will receive full medical and rehabilitation support," the statement said, as per PTI.

The Sangareddy police, based on a complaint by a family member of one of the victims, on Monday registered an FIR against the factory management in connection with the explosion under Sections 105 (culpable homicide not amounting to murder), 110 (attempting to commit culpable homicide), and 117 (Voluntarily causing grievous hurt) of BNS.

The incident took place on Monday morning at Sigachi Industries Pvt. Ltd., located in the Pashamylaram industrial area. The blast reportedly occurred in one of the reactor units of the facility, followed by a major fire and partial structural collapse.

A distress call was received by the Fire Control Room at 9.37 a.m., prompting the deployment of eleven fire tenders. Fire department officials said a pressure build-up inside the reactor is suspected to have caused the explosion. A detailed probe is underway to ascertain the exact cause and whether safety protocols were adhered to.

Investigation So Far

The state government of Telangana has formed a five-member committee to investigate the incident. Investigators are facing hindrances as three key officials, the factory manager, DGM (production) and an operator have also lost their lives due to the incident, as reported by PTI.

Though the exact cause of the explosion is still under investigation, the officials said they are exploring the 'pressure build-up in the dryer of the unit' as a probable cause.

The investigations are expected to continue for about two weeks. Efforts are being made to acquire more information about the incident without delay. The inquiry will thoroughly examine the potential lapses in safety protocols, operational failures or any sudden issues that may have caused the accident.